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Electricity bills in Hong Kong to see 1 per cent cut, but lawmakers want more

Households and businesses across the territory will see their cost of electricity reduced by about 1 per cent next year, driven by lower fuel clause charges as global energy prices continue to slide.

But lawmakers slammed the city’s two power suppliers for playing a “numbers game” believing there was massive room for further reductions given huge guaranteed profits and surpluses in what they’ve set aside to procure fuel.

Environment secretary Wong Kam-sing claimed the initial plan from the duo was to freeze rates but that he had pressed for them to be lowered. This is the first rate cut for both companies since 2009.

CLP Power, which supplies two million accounts across Kowloon, New Territories and Lantau, told the Legislative Council economic development panel yesterday that average net tariff rates would be reduced from 114.2 cents per kilowatt hour to 113.2 cents beginning January.

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“Because of a significant drop in fuel prices, the impact of the fuel cost increase has been contained, enabling us to reduce our tariff for 2016.” said CLP boss Paul Poon Wai-yin. The rate could be kept in 2017 if energy prices remained as low, he said.

HK Electric, which serves 570,000 users on Hong Kong and Lamma islands, will reduce average net tariffs from 134.9 cents per kilowatt hour to 133.4 cents. Managing director Wan Chi-tin said the utility had gone a further step to reduce tariffs despite pledging to freeze them for five years in 2013.

For a Kowloon resident who consumes between 400 and 800 units of electricity a month, the reductions would lower their bills by up to HK$4.4. For most residents on the island side who use 500 units a month, monthly bills could be lowered by about HK$7.5. High energy-consuming businesses will enjoy bigger rate reductions due to regressive charging rates.

Civic Party’s Kwok Ka-ki said once fuel prices went up, the companies would immediately increase the net rates. “Basic tariff rates went up for both HK Electric and CLP. Don’t play number games.”

Industrial sector lawmaker Lam Tai-fai said he was “dissapointed” that secretary could only negotiate such an “unreasonably” small reduction given the huge slide in global oil and coal prices. “Oil is at a seven year low, coal is at a nine year low. You certainly paid a lot less for fuel this year,” Lam said.

Labour’s Lee Cheuk-yan said: “It’s obvious there can be further downward adjustment because the fuel cost account has risen so sharply.” Both companies still have surpluses of some HK$2 billion each in their fuel clause accounts.

World Green Organisation chief executive Dr William Yu Yuen-ping believed the rates cuts were made to manufacture a “friendly atmosphere” ahead of the two company’s upcoming negotiations over the scheme of control regulatory framework, which expires in 2018. The scheme currently guarantees it return of 9.99 per cent on its fixed assets.

Wong said his bureau had consulted their experts and felt the tariff proposals were acceptable.

Source URL: http://www.scmp.com/news/hong-kong/economy/article/1891723/electricity-bills-hong-kong-see-1-cent-cut-lawmakers-want

CLP’s Stance on Climate Change

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Power companies have gathered nearly HK$5.7 billion by overcharging – report

CLP Power Hong Kong Limited (CLP) and The Hong Kong Electric Company Limited have overcharged for electricity and fuel costs to the tune of nearly HK$5.7 billion, Apple Daily reported.

https://www.hongkongfp.com/2015/12/07/power-companies-have-gathered-nearly-hk5-7-billion-by-overcharging-report/

Excluding CLP’s special rebate of more than HK$1.2 billion in August this year, the two power companies still have more than HK$4.43 billion in Fuel Clause Recovery Accounts and Tariff Stabilization Funds – with Hong Kong Electric accounting for HK$2.1 billion and CLP for HK$2.3 billion. The surpluses could allow 320,000 Island customers and 420,000 Kowloon households to be supplied with free electricity for a year.

Tariffs paid by customers are composed of the basic tariff based on a standard cost of fuel required for electricity supply, and a fuel cost adjustment to cover any fuel costs above or below the standard cost already included in the basic tariff. Fuel cost adjustments are proposed every year. If the power company overestimates the fuel cost and hence overcharges its customers, the surplus will automatically go into the Fuel Clause Recovery Account (FCA). For instance, CLP charges its customers 27 cents per unit this year. However, the actual fuel price was 24.6 cents in October. In other words, customers paid a surplus of 2.4 cents per unit.

Paul Poon Wai-yin, Managing Director of CLP Power, said in July that the FCA was designed to “mitigate the cost impact of significant fuel cost fluctuations” and “has served its purpose to stabilise tariffs” for customers.

Prentice Koo, Assistant Manager in Climate Policy and People of the World Wide Fund For Nature Hong Kong, told Apple Daily, “For every payment made per unit of energy, customers are actually contributing to the FCA.”

CLP has been overestimating the fuel cost since 2013. The FCA balance of CLP has HK$1.60 billion while that of Hong Kong Electric had HK$1.41 billion in June – highest in ten years.

Electricity in Hong Kong is supplied by two investor-owned companies – CLP and The Hongkong Electric Company Limited. The two power companies are currently regulated through Scheme of Control Agreements, giving neither of them any exclusive rights over the supply of electricity. The agreements will expire in 2018.

According to the agreements, the permitted rate of return of the power companies is 9.99% of their average net fixed assets. Any excess of revenue over the rate is transferred to a Tariff Stabilization Fund. Therefore, the fund serves as a buffer for the company’s return.

Hong Kong Electric had HK$678 million in its Tariff Stabilization Fund in June this year, while CLP had $HK$749 million.

Koo said, “For power companies, it is best if there is money in the fund. This is because when companies underestimate the fuel_ cost, money can be withdrawn to compensate for inadequate profits.” He also said that for Hong Kong Electric, the sum of money in both the FCA and Stabilization Fund is HK$2.08 billion in total. If each household consumes 400 units of energy a month, the sum of money is enough to pay for 320,000 households’ tariffs for a year.

CLP told Apple Daily that fuel costs are difficult to estimate as international fuel prices are volatile, and even if there was a positive balance in its FCA, CLP would not make a profit from it.

Last month, the Hong Kong and Kowloon Trades Union Council submitted a petition calling for more competition and suggested the government review the profit scheme in the electricity market.

 

Tax Me, Says Exxon Mobil, in Declaring Support for Climate Talks

Exxon Mobil Corp., a favorite target of global warming activists, said Wednesday that it’s hopeful for a deal out of the climate-change talks in Paris and still thinks the best solution is a tax on carbon pollution.

As the United Nations negotiations moved into a third day, the world’s biggest oil explorer said in an blog post that it supports “meaningful action to address the risks of climate change” as long as it preserved access to the reliable and affordable energy.

“The long-term objective of climate-change policy should be to reduce the risks of serious harm to humanity and ecosystems at minimum societal cost, while recognizing shared humanitarian necessities,” Exxon Mobil General Counsel Ken Cohen wrote in the post.

In the run-up to the Paris talks that began Nov. 30, Exxon has been under heavy assault by environmentalists and politicians who say it misled the public by promoting uncertainties about climate science. New York State’s attorney general has subpoenaed company records about its research going back decades, and U.S. Secretary of State John Kerry, in a Rolling Stone interview published Tuesday, said Exxon’s actions would amount to “a betrayal” of humanity if it’s found to have suppressed knowledge about climate risks.

Revenue-Neutral Tax

Exxon has said it made its research public and did nothing wrong. The Irving, Texas-based explorer takes climate change seriously and has taken steps to reduce its own emissions, Cohen said in today’s post.

The most effective solution would be a revenue-neutral tax on greenhouse gas emissions, Cohen wrote, reiterating a position Exxon has held for years.

“Instead of subsidies and mandates that distort markets, stifle innovation, and needlessly raise energy costs, a carbon tax could help create the conditions to reduce greenhouse gas emissions in a way that spurs new efficiencies and technologies,” he said.

“The revenue-neutral carbon tax could be a workable policy framework for countries around the world.”

Long a hard-line opponent to climate-friendly carbon limits, Exxon began to soften its outlook and embrace the need to curb greenhouse gases in 2006 when Rex Tillerson succeeded Lee Raymond as chairman and CEO. The company’s $35 billion takeover of XTO Energy in 2010 was inspired in part by expectations that stricter climate rules would spur natural gas demand as a replacement for dirtier coal.

Hong Kong will arrive at the Paris climate talks empty handed; let’s make sure it leaves with bold ideas to cut the city’s rising emissions

Gavin Edwards says the UN meeting in Paris offers an ideal opportunity for our environment secretary to learn about, and adopt, other cities’ pioneering efforts

Hong Kong’s Environment Secretary Wong Kam-sing will travel to Paris at the end of this month for the UN climate negotiations, where world governments will come together to agree a bold new set of targets and actions on climate change. The key outcome will hopefully be a new international agreement on the climate, applicable to all countries, with the aim of keeping global warming below 2 degrees Celsius. In preparation for the meeting, more than 150 countries have already indicated a number of pledges they may be willing to make – their Intended Nationally Determined Contributions – that can form part of the agreement. For example, the European Union pledges to cut its emissions by 40 per cent (from 1990 levels) by 2030, Costa Rica is aiming to be carbon neutral by 2021, and China aims to lower its carbon intensity by 60 to 65 per cent by 2030 (from 2005) and ensure its emissions peak by 2030.

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As we approach the final weeks in the lead-up to the Paris agreement, a couple of challenges are emerging – one global, one local. The global challenge is that the intended contributions by all countries have been modelled by climate scientists and policy experts at Climate Action Tracker (an independent group of four leading research organisations), and they forecast that the world will see a 2.7 degree rise by late in the century if the Paris agreement succeeds and is implemented.

This falls well short of the 2 degree target governments are aiming for, and is a long way shy of the generally accepted safe temperature rise which our planet can tolerate: 1.5 degrees. And this is not just some academic numbers game. At 2.7 degrees warmer, we could experience significant food shortages globally as crops fail in sub-Saharan Africa, and our own major source of food – the Pearl River Delta – experiences increasing flooding. Even a 2 degree rise – the stated aim of the Paris agreement – spells the end of the world’s coral reefs and a whole host of other impacts driven by increasingly extreme weather patterns.

At 2.7 degrees warmer, we could experience significant food shortages globally as crops fail in sub-Saharan Africa

Second, the local challenge: Hong Kong’s contribution to averting catastrophic climate change. Wong gathered key government, corporate and NGO representatives together on November 6 to launch the Hong Kong Climate Change Report, outlining government efforts. However, instead of articulating a plan of action for the decades ahead, he summarised existing policies and efforts, and is taking a wait-and-see approach to the Paris climate negotiation so the government can then consider its next steps. This is odd, given that China (which reports and commits globally on its greenhouse gas emissions, including those of Hong Kong) has outlined its plan well beyond 2020. On a recent trip to the US, President Xi Jinping (習近平) articulated a range of measures, including greenhouse-gas emissions targets, investments in renewable energy, a national emission trading scheme to regulate large carbon dioxide emitters, and clear targets for green buildings.

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Here in Hong Kong, the current plan is to reduce carbon dioxide emissions by 19 to 33 per cent by 2020 (from 2005), but that’s all. With current efforts, we’ll only achieve the low end of this target, and only if the long-promised initiative to reduce the burning of coal for electricity generation is implemented. Contrast this with cities around the world which will come together at a special event during the Paris negotiations, share their ambitious plans, and learn from each other. Greater Taipei will cut its emissions by 20 per cent by 2026 (from 2006), Yokohama will cut by 80 per cent by 2050 (from 2005), London by 60 per cent by 2025 (from 1990) and New York by 40 per cent by 2030 (from 1990). However, Hong Kong’s greenhouse gas emissions have been steadily rising over the past decade, by 23 per cent from 2002 to 2012.

The development of renewable energy in the city has barely begun. And CLP Power is proposing new gas-fired power generation instead of using renewable energy. The social cost of fossil fuel has never been mentioned, even in the latest document of the electricity market regulatory regime review. If our electricity market is not going to change, there is no chance for us to stop climate change. Under the Air Pollution Control Ordinance, carbon dioxide is not even considered a pollutant, even though it is widely agreed that ever-escalating carbon dioxide emissions are one of the largest threats to our planet and our city. Our electricity market is not ready to tackle climate change.

So, if the past decade was something of a lost decade for Hong Kong in terms of making a meaningful and commensurate contribution to tackling climate change, what should we do in the next decade, to catch up?

If our electricity market is not going to change, there is no chance for us to stop climate change

First, the Environment Bureau has a huge opportunity to address the lack of renewable energy development by adopting a comprehensive feed-in tariff policy to reward anyone who installs solar panels on rooftops or wind turbines in coastal waters. As the government wraps up its review of the Scheme of Control Agreement which governs our electricity production, it must include a renewable energy support policy, even if we are one of the last cities in Asia to adopt such a policy.

Second, it’s time for our private sector to put funding into renewable energy and energy efficiency development. Globally, there are more new investments in renewable energies such as wind and solar than there are in coal, gas and nuclear combined. They are effectively winning against these dirty energy sources, because governments around the world realise the importance of supporting safe, low-carbon energy. Some US$270 billion is being invested in low carbon development.

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So instead of supporting CLP’s pitch to build another gas plant, the government should encourage future investment in renewables, and greater investment in energy efficiency. For example, a simple scheme to encourage all grocery and convenience shops to put doors on their display fridges will cut their fridge energy consumption by 50 per cent, according to recent WWF research.

Lastly, we need a plan for Hong Kong that goes beyond 2020. Our environment secretary arrives in Paris empty-handed without a longer-term plan while other cities profile theirs. However, it does not have to be a wasted journey – he will have an incredible opportunity to learn about the pioneering efforts of other cities, and to bring back ideas to adapt to Hong Kong. This can start with a plan to substantially cut our city’s emissions by 2030, and a plan to adopt a new scheme of control to encourage renewable energy development.

The difference between a world that is 2.7 degrees warmer and one that is only 1.5 degrees warmer is the difference between a liveable planet and a planet that is thrown into chaos. It’s time for Hong Kong to step up its efforts by leaving Paris with new ideas and bolder pledges to do much more. And when Hong Kong attends the next big climate conference in a few years’ time, I very much hope that these efforts will earn us international recognition as Asia’s sustainable city.

Gavin Edwards is conservation director at WWF-Hong Kong

Source URL: http://www.scmp.com/comment/insight-opinion/article/1880805/hong-kong-will-arrive-paris-climate-talks-empty-handed-lets

Exxon Knew about Climate Change Almost 40 Years Ago

http://www.scientificamerican.com/article/exxon-knew-about-climate-change-almost-40-years-ago/

A new investigation shows the oil company understood the science before it became a public issue and spent millions to promote misinformation

The company’s knowledge of climate change dates back to July 1977, when its senior scientist James Black delivered a sobering message on the topic.

Exxon was aware of climate change, as early as 1977, 11 years before it became a public issue, according to a recent investigation from InsideClimate News. This knowledge did not prevent the company (now ExxonMobil and the world’s largest oil and gas company) from spending decades refusing to publicly acknowledge climate change and even promoting climate misinformation—an approach many have likened to the lies spread by the tobacco industry regarding the health risks of smoking. Both industries were conscious that their products wouldn’t stay profitable once the world understood the risks, so much so that they used the same consultants to develop strategies on how to communicate with the public.

Experts, however, aren’t terribly surprised. “It’s never been remotely plausible that they did not understand the science,” says Naomi Oreskes, a history of science professor at Harvard University. But as it turns out, Exxon didn’t just understand the science, the company actively engaged with it. In the 1970s and 1980s it employed top scientists to look into the issue and launched its own ambitious research program that empirically sampled carbon dioxide and built rigorous climate models. Exxon even spent more than $1 million on a tanker project that would tackle how much CO2 is absorbed by the oceans. It was one of the biggest scientific questions of the time, meaning that Exxon was truly conducting unprecedented research.

In their eight-month-long investigation, reporters at InsideClimate News interviewed former Exxon employees, scientists and federal officials and analyzed hundreds of pages of internal documents. They found that the company’s knowledge of climate change dates back to July 1977, when its senior scientist James Black delivered a sobering message on the topic. “In the first place, there is general scientific agreement that the most likely manner in which mankind is influencing the global climate is through carbon dioxide release from the burning of fossil fuels,” Black told Exxon’s management committee. A year later he warned Exxon that doubling CO2 gases in the atmosphere would increase average global temperatures by two or three degrees—a number that is consistent with the scientific consensus today. He continued to warn that “present thinking holds that man has a time window of five to 10 years before the need for hard decisions regarding changes in energy strategies might become critical.” In other words, Exxon needed to act.

But ExxonMobil disagrees that any of its early statements were so stark, let alone conclusive at all. “We didn’t reach those conclusions, nor did we try to bury it like they suggest,” ExxonMobil spokesperson Allan Jeffers tells Scientific American. “The thing that shocks me the most is that we’ve been saying this for years, that we have been involved in climate research. These guys go down and pull some documents that we made available publicly in the archives and portray them as some kind of bombshell whistle-blower exposé because of the loaded language and the selective use of materials.”

One thing is certain: in June 1988, when NASA scientist James Hansen told a congressional hearing that the planet was already warming, Exxon remained publicly convinced that the science was still controversial. Furthermore, experts agree that Exxon became a leader in campaigns of confusion. By 1989 the company had helped create the Global Climate Coalition (disbanded in 2002) to question the scientific basis for concern about climate change. It also helped to prevent the U.S. from signing the international treaty on climate known as the Kyoto Protocol in 1998 to control greenhouse gases. Exxon’s tactic not only worked on the U.S. but also stopped other countries, such as China and India, from signing the treaty. At that point, “a lot of things unraveled,” Oreskes says.

But experts are still piecing together Exxon’s misconception puzzle. Last summer the Union of Concerned Scientists released a complementary investigation to the one by InsideClimate News, known as the Climate Deception Dossiers (pdf). “We included a memo of a coalition of fossil-fuel companies where they pledge basically to launch a big communications effort to sow doubt,” says union president Kenneth Kimmel. “There’s even a quote in it that says something like ‘Victory will be achieved when the average person is uncertain about climate science.’ So it’s pretty stark.”

Since then, Exxon has spent more than $30 million on think tanks that promote climate denial, according to Greenpeace. Although experts will never be able to quantify the damage Exxon’s misinformation has caused, “one thing for certain is we’ve lost a lot of ground,” Kimmell says. Half of the greenhouse gas emissions in our atmosphere were released after 1988. “I have to think if the fossil-fuel companies had been upfront about this and had been part of the solution instead of the problem, we would have made a lot of progress [today] instead of doubling our greenhouse gas emissions.”

Experts agree that the damage is huge, which is why they are likening Exxon’s deception to the lies spread by the tobacco industry. “I think there are a lot of parallels,” Kimmell says. Both sowed doubt about the science for their own means, and both worked with the same consultants to help develop a communications strategy. He notes, however, that the two diverge in the type of harm done. Tobacco companies threatened human health, but the oil companies threatened the planet’s health. “It’s a harm that is global in its reach,” Kimmel says.

To prove this, Bob Ward—who on behalf of the U.K.’s Royal Academy sent a letter to Exxon in 2006 claiming its science was “inaccurate and misleading”—thinks a thorough investigation is necessary. “Because frankly the episode with tobacco was probably the most disgraceful episode one could ever imagine,” Ward says. Kimmell agrees. These reasons “really highlight the responsibility that these companies have to come clean, acknowledge this, and work with everyone else to cut out emissions and pay for some of the cost we’re going to bear as soon as possible,” Kimmell says.

It doesn’t appear, however, that Kimmell will get his retribution. Jeffers claims the investigation’s finds are “just patently untrue, misleading, and we reject them completely”—words that match Ward’s claims against them nearly a decade ago.

Lawmakers Seek Probe of Oil Giant for Hiding Knowledge of Climate Change

http://steelerslounge.com/2015/10/lawmakers-seek-probe-of-oil-giant-for-hiding-knowledge-of/33540/

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ExxonMobil scientists continue to research and publish findings to improve understanding of climate system science as a basis for society’s response to climate change and have produced more than 50 peer-reviewed publications on topics including the global carbon cycle, detection and attribution of climate change, low carbon technologies and analysis of future scenarios for energy and climate.

“We are writing concerning a potential instance of corporate fraud-behavior that may ultimately qualify as a violation of federal law”, said Sanders’ letter to Attorney General Loretta Lynch. The resulting report finds Exxon officials received information from their own top-notch researchers in July 1977 that a doubling of the carbon dioxide concentration in the atmosphere would raise global temperatures by 2 to 3 degrees Celsius, and by up to 10 degrees Celcius at the Earth’s poles.

“Based on available public information, it appears that Exxon knew its product was causing harm to the public, and has spent millions of dollars to obfuscate the facts in the public discourse”, he said.

“Exxon Mobil knew the truth about fossil fuels and climate change and lied to protect their business model at the expense of the planet”, Sanders, who is running for the Democratic presidential nomination, wrote. ExxonMobil scientists have been selected by the Intergovernmental Panel on Climate Change, the United Nations’ most authoritative body on the subject, as authors of their past four major assessment reports, and have contributed to National Research Council boards and committees on climate change. Their letter to the attorney general cited the ICN story and a separate investigation by the Los Angeles Times, which showed that Exxon studied how global warming could affect its Arctic operations. Exxon’s climate deception is now sparking calls for a federal probe similar to that which yielded a racketeering conviction of Big Tobacco for hiding the dangers of smoking. Bernie Sanders sent a letter to the Department of Justice urging it to investigate claims levied by liberal news outlets that the oil giant Exxon Mobil “covered up” evidence about man-made global warming.

“We held tobacco companies responsible for lying about cancer”.

Hillary Clinton’s campaign did not respond to a request for comment.

Exxon’s Funding Of Climate Denial Turned Americans Against Their Own Government For Profit

http://seeingtheforest.com/exxons-funding-of-climate-denial-turned-americans-against-their-own-government-for-profit/

Exxon and other fossil fuel companies may have committed a crime of enormous proportions, and more and more elected officials and others are demanding an investigation.

The charge is that Exxon scientists and management knew since the late 1970s that the company’s product was helping cause our planet to warm “catastrophically,” but management responded by covering this up and disseminating disinformation – joining with other companies to commit an enormous fraud on the public for profit.

For some time, environmentalists have been warning that oil and coal companies were behind a broad campaign to deceive the public and block the government from regulating or taxing carbon pollution. Sites like ExxonSecrets, the Union of Concerned Scientists, SourceWatch and their Coal Issues portal, CoalSwarm and many others have been exposing, warning, documenting and working to get the word out.

This campaign is said to have included strategic use of misinformation, propaganda disseminated through front groups disguised as ideological organizations and purchased political influence to turn a substantial portion of the public against their own government. This was so that the companies could continue to profit from selling a dangerous, destructive product.

Recent investigative reporting has been able to access internal Exxon documents and statements from company scientists that confirms what the environmentalists have been telling us.

Exxon Knew

In September Inside Climate News (ICN) broke a story they called “Exxon: The Road Not Taken.” Using internal Exxon documents, Climate News showed how “Exxon conducted cutting-edge climate research decades ago” that its executives suppressed as it went about “manufacturing doubt about the scientific consensus that its own scientists had confirmed.” The report begins:

At a meeting in Exxon Corporation’s headquarters, a senior company scientist named James F. Black addressed an audience of powerful oilmen. Speaking without a text as he flipped through detailed slides, Black delivered a sobering message: carbon dioxide from the world’s use of fossil fuels would warm the planet and could eventually endanger humanity.

According to the reporting, beginning in the late 1970s Exxon scientists repeatedly warned management that their product was contributing to warming the planet, and that this could be “catastrophic.” A senior Exxon scientist, for example, warned in 1977 that “Present thinking holds that man has a time window of five to ten years before the need for hard decisions regarding changes in energy strategies might become critical.”

That was in 1977. Exxon scientists continued sounding the alarm and at first the company responded responsibly by launching an ambitious carbon/climate research effort.

Within months the company launched its own extraordinary research into carbon dioxide from fossil fuels and its impact on the earth. Exxon’s ambitious program included both empirical CO2 sampling and rigorous climate modeling. It assembled a brain trust that would spend more than a decade deepening the company’s understanding of an environmental problem that posed an existential threat to the oil business.

The Los Angeles Times looked at that research effort, in “What Exxon knew about the Earth’s melting Arctic,” part of a year-long project “researching the gap between Exxon Mobil’s public position and its internal planning on the issue of climate change.” The Times’ investigation was extensive, with broad access to documents and experts:

As part of that effort, reporters reviewed hundreds of documents housed in archives in Calgary’s Glenbow Museum and at the University of Texas. They also reviewed scientific journals and interviewed dozens of experts, including former Exxon Mobil employees.” The LA Times report found that Exxon scientists – and management – understood clearly that carbon was contributing to climate change and that the effects were real and severe.

From the ICN report:

Exxon’s research laid the groundwork for a 1982 corporate primer on carbon dioxide and climate change prepared by its environmental affairs office. Marked “not to be distributed externally,” it contained information that “has been given wide circulation to Exxon management.” In it, the company recognized, despite the many lingering unknowns, that heading off global warming “would require major reductions in fossil fuel combustion.”

Unless that happened, “there are some potentially catastrophic events that must be considered,” the primer said, citing independent experts. “Once the effects are measurable, they might not be reversible.”

Exxon knew. The company was part of an industry that was profiting from a product that was polluting the planet with potentially “catastrophic” consequences that “endangered humanity.”

So what did Exxon do with that knowledge?

What Exxon Did

What did Exxon do after company scientists provided indisputable evidence of the risks their product posed to the planet and humanity? The ICN report continued:

Then, toward the end of the 1980s, Exxon curtailed its carbon dioxide research. In the decades that followed, Exxon worked instead at the forefront of climate denial. It put its muscle behind efforts to manufacture doubt about the reality of global warming its own scientists had once confirmed. It lobbied to block federal and international action to control greenhouse gas emissions. It helped to erect a vast edifice of misinformation that stands to this day.

Exxon hid its corporate lobbying effort using a network of front groups disguised as ideological organizations and “think tanks” to disseminate disinformation and anti-government propaganda. They worked to sow doubt about the science – including smearing scientists and environmental activists – and to delegitimize potential efforts by governments to regulate its product. They also funded politicians who would help block efforts to regulate them. The ICN report explains:

Exxon helped to found and lead the Global Climate Coalition, an alliance of some of the world’s largest companies seeking to halt government efforts to curb fossil fuel emissions. Exxon used the American Petroleum Institute, right-wing think tanks, campaign contributions and its own lobbying to push a narrative that climate science was too uncertain to necessitate cuts in fossil fuel emissions.

Exxon and other companies utilized a network of front groups to push what has come to be called “climate denial.” The Union of Concerned Scientists (UCS) looked at what they call Global Warming Skeptic Organizations and warned,

These organizations play a key role in the fossil fuel industry’s “disinformation playbook,” a strategy designed to confuse the public about global warming and delay action on climate change. Why? Because the fossil fuel industry wants to sell more coal, oil, and gas — even though the science clearly shows that the resulting carbon emissions threaten our planet.

The Union of Concerned Scientists’ “Climate Deception Dossiers” examine a “coordinated campaign of deception” that is “underwritten by ExxonMobil, Chevron, ConocoPhillips, BP, Shell, Peabody Energy, and other members of the fossil fuel industry.” ExxonSecrets has mapped the networking of many of these organizations. And from 2007, New report from Union of Concerned Scientists documents ExxonMobil’s disinformation campaign:

Smoke, Mirrors & Hot Air: How ExxonMobil Uses Big Tobacco’s Tactics to “Manufacture Uncertainty” on Climate Change, a report released today by the Union of Concerned Scientists, details how ExxonMobil has adopted the tobacco industry’s disinformation tactics, as well as some of the same organizations and personnel, to cloud the scientific understanding of climate change and delay action on the issue. The section of the report on “Buying Government Access” includes discussion of documentation we made available in 2005 and issues we have raised since then.

The Tobacco Model

The Exxon/industry campaign strategies and tactics did not come out of nowhere. Tobacco companies had paved, refined and perfected the way.

After scientists and doctors began to warn that tobacco was causing cancer in people, tobacco companies came up with a plan to block the government from regulating their product. They created a campaign to convince the public that the science was not certain. They pioneered the use of organizations disguised as political and ideological organizations to disseminate anti-government propaganda aimed at preventing regulation of their product.

More than 480,000 Americans still die every year because of what the tobacco industry did. But their campaign to keep the profits rolling in didn’t just kill people; it turned a substantial portion of the American public against their own government. They disguised their propaganda as “limited government” ideology, but it was really just a plan to limit the government from regulating them.

The tobacco campaign worked for decades – bringing billions more in profits after the dangers of the product were known. Now that strategy serves as a model for other corporations that push products that injure, kill, scam, cheat or otherwise hurt people and worry that the government might try to do something about them.

In 2008 Chris Mooney wrote at The American Prospect about companies using the tobacco industry’s model in, “The Manufacture of Uncertainty,” reviewing the book “Doubt is Their Product: How Industry’s Assault on Science Threatens Your Health” by David Michaels. Mooney wrote:

The sabotage of science is now a routine part of American politics. The same corporate strategy of bombarding the courts and regulatory agencies with a barrage of dubious scientific information has been tried on innumerable occasions – and it has nearly always worked, at least for a time. Tobacco. Asbestos. Lead. Vinyl chloride. Chromium. Formaldehyde. Arsenic. Atrazine. Benzene. Beryllium. Mercury. Vioxx. And on and on. In battles over regulating these and many other dangerous substances, money has bought science, and then science – or, more precisely, artificially exaggerated uncertainty about scientific findings – has greatly delayed action to protect public and worker safety. And in many cases, people have died.

Tobacco companies perfected the ruse, which was later copycatted by other polluting or health-endangering industries. One tobacco executive was even dumb enough to write it down in 1969. “Doubt is our product,” reads the infamous memo, “since it is the best means of competing with the ‘body of fact’ that exists in the minds of the general public. It is also the means of establishing a controversy.”

A Wider Conspiracy?

This may be a wider corporate conspiracy that involves more than just one company. The massive campaign to block carbon regulation by turning Americans against their own government was not just an effort by Exxon. Meteor Blades explains at DailyKos, in “Former DOJ attorney beat Big Tobacco, wants probe of Exxon and others who buried climate change info“:

One of Exxon and other fossil fuel companies’ efforts included helping to establish the Global Climate Coalition in 1989 shortly after the first meeting of the U.N.-created Intergovernmental Panel on Climate Change (IPCC). Among GCC’s efforts was a tendentious video it provided to journalists at the 1992 Earth Summit in Rio de Janeiro in which it claimed, among other things, that more CO2 in the atmosphere would boost crop yields. So, something to cheer rather than worry about.

Until 1997, according to SourceWatch, GCC operated out of the offices of the National Association of Manufacturers. Among its members besides Exxon: the American Forest & Paper Association, American Petroleum Institute, Chevron, Ford, General Motors, Shell Oil, and the U.S. Chamber of Commerce. The organization was disbanded in 2002, although neither Exxon nor other former members gave up their propaganda war against climate science.

That organization was disbanded, but the funding of these anti-government, science-denial front groups continues.

Demands Grow For An Investigation

Last week, representatives Ted Lieu and Mark DeSaulnier, who serve on the House Oversight and Government Reform Committee, requested a Department of Justice investigation into Exxon.

“In this case, Exxon scientists knew about fossil fuels causing global warming and Exxon took internal actions based on its knowledge of climate change,” Lieu and DeSaulnier wrote. “Yet Exxon funded and publicly engaged in a campaign to deceive the American people about the known risks of fossil fuels in causing climate change.”

“If these allegations against Exxon are true then Exxon’s actions were immoral,” they added. “We request the DOJ to investigate whether ExxonMobil’s actions were also illegal.”

On Friday presidential candidate Martin O’Malley joined in, tweeting “We held tobacco companies responsible for lying about cancer. Let’s do the same for oil companies & climate change.” The tweet linked to a New Republic report on the Lieu/DeSaulnier letter.

Climate Progress wrote Tuesday that Sharon Eubanks, a “former U.S. Department of Justice attorney who prosecuted and won the massive racketeering case against Big Tobacco thinks the agency should consider investigating Big Oil for similar claims: engaging in a cover-up to mislead the public about the risks of its product.”

Sharon Eubanks, who now works for the firm Bordas & Bordas, told ThinkProgress that ExxonMobil and other members of the fossil fuel industry could be held liable for violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) if it’s discovered that the companies worked together to suppress knowledge about the reality of human-caused climate change. She said that, considering recent revelations regarding ExxonMobil, the DOJ should consider launching an investigation into big fossil fuel companies.

“I think a RICO action is plausible and should be considered,” she said.

Senator and presidential candidate Bernie Sanders brought more attention to the charges this week, sending a letter to the Justice Department asking for a probe of Exxon, bringing attention to an issue that has been bubbling up for some time. Sanders’ press release explains the reason a probe is in order:

“Exxon Mobil knew the truth about fossil fuels and climate change and lied to protect their business model at the expense of the planet,” Sanders said. He likened Exxon Mobil’s conduct to claims by the tobacco industry about the health risks associated with smoking.

From Sanders’ letter:

“These reports, if true, raise serious allegations of a misinformation campaign that may have caused public harm similar to the tobacco industry’s actions — conduct that led to federal racketeering convictions.”

Polluting Democracy, Too

This propaganda and the money that propelled it has polluted our entire political system. Look into almost any organization (or political party) promoting “limited government” and complaining about “burdensome government regulation” and you will find oil money. This is not ideology; this is corruption. This is giant corporations trying to keep the government from doing something about their dangerous, destructive products.

This is a crime against our country and the world. It is a crime against our democratic system. The companies behind this enormous fraud on the public must be investigated for possible criminal activity. The front groups that disseminate anti-government, anti-regulation propaganda at their behest should be exposed as frauds and brought under control.

Now we have to move forward as quickly as possible to limit the burning of fossil fuels. Because of these companies and their fraud and disinformation, it is too late to stop the climate from changing – but it might not be too late to ward off the worst effects

Exxon’s Climate Cover-Up Should Be Investigated By DOJ, Tobacco Prosecutor Says

http://thinkprogress.org/climate/2015/10/20/3713761/exxon-climate-denial/

A former U.S. Department of Justice attorney who prosecuted and won the massive racketeering case against Big Tobacco thinks the agency should consider investigating Big Oil for similar claims: engaging in a cover-up to mislead the public about the risks of its product.

Sharon Eubanks, who now works for the firm Bordas & Bordas, told ThinkProgress that ExxonMobil and other members of the fossil fuel industry could be held liable for violations of the Racketeer Influenced and Corrupt Organizations Act (RICO) if it’s discovered that the companies worked together to suppress knowledge about the reality of human-caused climate change. She said that, considering recent revelations regarding ExxonMobil, the DOJ should consider launching an investigation into big fossil fuel companies.

“I think a RICO action is plausible and should be considered,” she said.

Eubanks’ comments come a few days after two House Democrats urged Attorney General Loretta Lynch to launch an investigation into ExxonMobil for hiding the results of its own climate change research. Recent investigations from Inside Climate News and the Los Angeles Times discovered that ExxonMobil conducted research in 1977 affirming that climate change was caused by carbon emissions from fossil fuels, yet continued to fund politicians and organizations that deny climate science and work to prevent regulations limiting carbon emissions.

Many have compared the situation to the actions of the tobacco industry. In 2006, a federal judge found that the big tobacco companies colluded to “deceive the public” about the health hazards of smoking, which amounted to a racketeering enterprise. The reason they did it, Eubanks said, was to avoid health regulations and save money.

“The cigarette companies actively denied the harm of cigarette smoking, and concealed the results of what their own research developed,” she said. “The motivation was money, and to avoid regulation.”

It appears to me … that there was a concerted effort by Exxon and others to confuse the public on climate change.

Based on the revelations about ExxonMobil, Eubanks said the Department of Justice should consider investigating whether similar collusion occurred among big fossil fuel companies and other high-carbon-emitting industries that would profit from climate denial.

“It appears to me, based on what we know so far, that there was a concerted effort by Exxon and others to confuse the public on climate change,” Eubanks said. “They were actively denying the impact of human-caused carbon emissions, even when their own research showed otherwise.”

In addition to giving millions of dollars to politicians and groups that deny climate science, ExxonMobil helped found the Global Climate Coalition, “an alliance of some of the world’s largest companies seeking to halt government efforts to curb fossil fuel emissions,” according to Inside Climate. Exxon’s company leaders also argued against the Kyoto Protocol, an international treaty to fight climate change which the U.S. refused to sign. Exxon reportedly advised then-President George W. Bush not to sign it.

Critics say ExxonMobil did this while knowing full well the risks of climate change, which is expected to include the displacement of millions of people and even the erasure of some low-lying island nations.

Because of this, calls for a DOJ investigation into ExxonMobil and other fossil fuel companies are getting louder. Last week, Democratic presidential candidate and former Maryland Governor Martin O’Malley tweeted his support for an investigation, drawing yet another parallel to the tobacco industry.

“We held tobacco companies responsible for lying about cancer,” O’Malley said. “Let’s do the same for oil companies and climate change.”

However, Eubanks warned that if the charge is anything like the tobacco case, a DOJ investigation would need bi-partisan support — or a Democratic-controlled Congress and White House — to be successful. She recalled dealing with a Republican-controlled Congress during the prosecution of the tobacco industry, and then later, a Republican president who did not want to see the industry hurt.

“We filed the case under the Clinton administration, and we struggled with budget issues — many of the Republicans pushed hard to push us down,” Eubanks said.

After Bush was elected, the environment at the DOJ worsened. “They were trying to choke the case off,” she said. “It was a long time ago, but i still get queasy feeling when I think about working seven-day weeks all the time, and a nine-month trial, to see these people trying to kill the case.”

She did eventually win the case, but at a cost, Eubanks said. Instead of the $130 billion her team had sought, Bush administration loyalists pushed her team to seek only $10 billion, she said.

“This is more important than just running a case.”

Still, Eubanks stressed than a similar investigation into ExxonMobil could be worthwhile under any political circumstances — even if it’s to find out that there’s not enough evidence to bring a lawsuit at all.

“I can’t tell you that it clears every hurdle,” she said. “I’m not an environmental lawyer. But I know it’s important…This is more important than just running a case. That much I’m sure of.”

Big oil, big tobacco, big lies

http://www.irishexaminer.com/viewpoints/analysis/big-oil-big-tobacco-big-lies-358320.html

Kelle Louaillier and Bill McKibben

Just as big tobacco deliberately misled the public on the cancer-causing effects of smoking, big oil attacked scientists who warned of the impending climate disaster and their attempts now to help ‘solve’ the problem should be shunned by governments, write Kelle Louaillier and Bill McKibben

OVER the last few years, a growing number of people have been taking a hard look at what is happening to our planet — historic rising sea levels, massive floods — and acknowledging, finally, that human activity is propelling rapid climate change. But guess what? Exxon (now ExxonMobil) had an inkling of this as early as 1978.

By the early 1980s, Exxon scientists had much more than an inkling. They not only understood the science behind climate change, but also recognized the company’s own outsize role in driving the phenomenon.

Recognizing the potential effects as “catastrophic” for a significant portion of the population, they urged Exxon’s top executives to act. Instead, the executives buried the truth.

There may be a silver lining to this infuriating story: The recent investigation that exposed Exxon’s deceit could end up catalysing the action needed to address the looming climate crisis. After all, similar revelations about the tobacco industry — what the major cigarette companies knew and when they knew it — transformed the public-health landscape.

In 1996, a series of lawsuits forced tobacco companies to release millions of internal documents, which confirmed what public-health advocates and policymakers had long suspected: As early as the 1950s, the industry knew that nicotine was addictive and that cigarettes caused cancer.

But, to protect its own interests, big tobacco deliberately misled the public, doing everything possible to cast doubt on scientific findings that it knew to be accurate. Such tactics enabled the industry to delay, for more than 50 years, regulation that could have saved millions of lives annually.

After the revelations, however, it was clear that the tobacco industry was a malevolent force that did not belong in the policymaking process. With big tobacco out of the picture, and armed with evidence of the real effects of tobacco consumption, health advocates were finally able to compel their governments to act.

In 2003, world leaders agreed to the Framework Convention on Tobacco Control (FCTC), negotiated under the auspices of the World Health Organisation. Today, the treaty covers 90% of the world’s population and has contributed to a significant decline in sales for global tobacco corporations. Over time, it will save hundreds of millions of lives (and save governments’ health budgets huge sums).

Big oil, it is now clear, has been following big tobacco’s playbook. In 1997, almost two decades after it began studying climate change, it quashed its research, claiming that climate science was “far from clear” and thus it did not “support mandated cuts in energy use.”

Beyond suppressing its own findings, ExxonMobil (and its peers) funded and promoted junk science and attacked scientists who warned of the impending climate disaster. The fossil-fuel companies’ approach was so effective that the media are only now beginning to recognise the leading role the industry played in creating — almost out of whole cloth —the so-called climate debate.

But perhaps big oil’s biggest success was diminishing the political will to implement appropriate regulation. Even after the international community adopted the UN Framework Convention on Climate Change (UNFCCC) in 1992, the fossil-fuel industry managed to block meaningful progress — to the point that, if serious action is not taken soon, the entire process could unravel.

In Europe, Royal Dutch Shell’s lobbying so diluted the EU’s efforts that there are now no binding targets for renewables or energy efficiency for individual countries. The company even sent a letter to the European Commission’s president claiming that “gas is good for Europe.” Shell and other oil companies are now promising to work as “advisers” to national governments on how to deal with climate change.

Just as the tobacco files drove the tobacco industry out of policymaking processes, the Exxon investigation should compel world leaders to eliminate the fossil-fuel industry from efforts to solve the climate crisis. After all, no policy can succeed if those who shape it are betting on its failure.

The turning point for tobacco-related public-health policy came when the industry’s depravity became indisputable. Now, that moment has come for the climate movement.

We cannot simply hope that the fossil-fuel industry will change its ways. As an alliance of human-rights groups, environmental activists, and corporate-accountability advocates already is demanding, we must kick the industry out of the policymaking process altogether.

Exxon’s scientists were right: The effects of climate change on many communities are catastrophic. With so many lives at stake — and such clear evidence of the threat big oil, like big tobacco before it, should be treated for what it is: big trouble.

Kelle Louaillier is president of Corporate Accountability International. Bill McKibben, a scholar in environmental sciences at Middlebury College and member of the American Academy of Arts and Sciences, is co-founder of 350.org.